"Employment Contract Template"

What Is an Employment Contract?

An Employment Contract is a legal agreement signed between an employer and an employee (or a company and an individual) in which the employer is bound to provide the employee with work and pay them an agreed salary, while the employee is legally bound to work for the employer on the terms stated in the contract. The purpose of the document is to describe all of the terms and conditions that regulate the relationship between the employer and the employee that they have agreed on.

An Employment contract template can be downloaded below or can be tailored to your needs using our online form builder.

Alternate Names:

  • Employment Agreement;
  • Employee Contract;
  • Labor Contract.

A Contract for Employment is a very complex document that regulates the majority of questions connected with employment. It determines in detail how the employee will be paid, their working hours, what their main responsibilities will be, what kind of benefits they are entitled to, etc. It can be used for any type of employee, however, it can be modified depending on the specifics of the situation. For example, for contractor employment, the employer should include the terms regulating the work time for the contractors and their specific fees. Additionally, Contractor Agreements usually do not include any benefits or paid leave.

A Temporary Employment Contract is a related legal document signed between an employer and an employee (or a company and an individual) in which the parties have decided that the employee is engaged in work only for a specific period of time.

ADVERTISEMENT

What Are the Benefits of a Contract of Employment?

One of the main purposes of the contract is to detail what kind of benefits the employee is entitled to. The benefits can cover different areas of the employee's life and depend on the company that provides them, and the level of the employee, however, most of them include salary, vacation time, health insurance, unemployment benefits, etc.

However, having an Employment Agreement can be important for other reasons as well. With it, the parties receive a list of advantages such as:

  1. A list of written rights and responsibilities that each party must follow, thus, it secures the positions of all of the involved parties.
  2. Each procedure, such as contract termination or contract prolongation, is described in detail, so before initiating it, each party should follow the appropriate steps. It protects employment from unsolicited and unexpected situations.
  3. Each contract statement can be changed only after the parties have negotiated and agreed on it, which prevents the document from being one-sided.

How to Write an Employment Contract?

The Employment Contract format can contain several main parts, which include the following:

  • The Parties. In the first part of the document, the parties should enter their names and addresses;
  • The Subject. Here the involved parties should describe the nature of their relationship, stating that the parties are entering the employment relationship which is regulated by this agreement;
  • Employment Benefits. Parties use this part of the document to designate the benefits that the employee is entitled to. It includes the salary, bonuses, paid vacation days, health insurance, etc. (if applicable);
  • Rights and Responsibilities of Parties. This is the biggest part of the document, where all of the parties' rights and responsibilities must be listed with great detail. The more exact it is, the easier it will be to avoid any misunderstandings.

Parties can include other sections in the agreement, such as severability, contact information, jurisdiction, contract termination, governing law, a non-disclosure clause, a non-compete clause, information about representatives, definitions, etc.

The contents of the contract also depend on the position of the employee. For example, if an employee holds the position of Company President, their executive Employment Contract will be slightly different from a regular Labor Contract. Usually, an average executive Employment Contract entitles more responsibilities to the employee but compensates it with more employment benefits as well.

How to Negotiate an Employment Contract?

Even though the Employment Contract is developed for all of the employees (with some minor differences due to the position level), there are always things that can be negotiated. If an individual is offered employment in a company, here is the list of major things they should pay attention to:

  1. Make sure that everything's in writing. All of the promises that the prospective employer made to the individual but never put in the contract have no legal power. The individual should make sure that everything promised to them is written in the contract, and that the contract is signed by both parties.
  2. Negotiate the salary. The individual should not only pay attention to the salary rate, but also to how it will be calculated, when it will be paid, and how often it will be increased. Individuals should also check if there are any other compensations that they will be entitled to; or are there any circumstances under which their salary can be reduced.
  3. Discuss the probation period. If the agreement contains a probation clause, the individual should try and ask their potential employer to remove it. The probation period does not give the individual any security, and they can be removed from work at any time.

If the individual feels uncertain and seeks help for the negotiation, they should schedule a meeting with a local lawyer. While looking for one they should focus on finding a professional labor specialist with comprehensive knowledge on the subject.


Still looking for a particular form? Take a look at these similar templates:

ADVERTISEMENT

Download "Employment Contract Template"

Download PDF

Fill PDF online

Rate (4.5 / 5) 13 votes
Employment Contract
This ​ E mployment Contract (hereinafter referred to as the “Agreement”) is entered into
as of _______________ by and between __________________________, with a mailing
address of _______________________________________________________________
_________________________________ (hereinafter referred to as the “Employer”) and
__________________________, with a mailing address of ________________________
____________________________________ (hereinafter referred to as the “Employee”),
collectively referred to as the “Parties,” both of whom agree to be bound by this
Agreement.
Background:
a. The Employer is of the opinion that the Employee has the necessary qualifications,
experience and abilities to assist and benefit the Employer in their business.
b. The Employer desires to employ the Employee and the Employee has agreed to
accept and enter such employment upon the terms and conditions set out in this
Agreement.
IN CONSIDERATION OF the matters described above and of the mutual benefits
and obligations set forth in this Agreement, the receipt and sufficiency of which
consideration is hereby acknowledged, the Parties agree as follows:
1. Commencement Date and Term. ​ T he Employee will commence permanent full-time
employment with the Employer on _______________.
2. Job Title and Description.​ The initial job title of the Employee will be the following:
_______________________________________________________________________
The Employee agrees to be employed on the terms and conditions set out in this
Agreement. The Employee agrees to be subject to the general supervision of and act
pursuant to the orders, advice and direction of the Employer.
The Employee will perform any and all duties as requested by the Employer that are
reasonable and that are customarily performed by a person holding a similar position in
the industry or business of the Employer.
©​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
T EMPLATEROLLER.COM​ ​ ​ ​ ​
Employment Contract
This ​ E mployment Contract (hereinafter referred to as the “Agreement”) is entered into
as of _______________ by and between __________________________, with a mailing
address of _______________________________________________________________
_________________________________ (hereinafter referred to as the “Employer”) and
__________________________, with a mailing address of ________________________
____________________________________ (hereinafter referred to as the “Employee”),
collectively referred to as the “Parties,” both of whom agree to be bound by this
Agreement.
Background:
a. The Employer is of the opinion that the Employee has the necessary qualifications,
experience and abilities to assist and benefit the Employer in their business.
b. The Employer desires to employ the Employee and the Employee has agreed to
accept and enter such employment upon the terms and conditions set out in this
Agreement.
IN CONSIDERATION OF the matters described above and of the mutual benefits
and obligations set forth in this Agreement, the receipt and sufficiency of which
consideration is hereby acknowledged, the Parties agree as follows:
1. Commencement Date and Term. ​ T he Employee will commence permanent full-time
employment with the Employer on _______________.
2. Job Title and Description.​ The initial job title of the Employee will be the following:
_______________________________________________________________________
The Employee agrees to be employed on the terms and conditions set out in this
Agreement. The Employee agrees to be subject to the general supervision of and act
pursuant to the orders, advice and direction of the Employer.
The Employee will perform any and all duties as requested by the Employer that are
reasonable and that are customarily performed by a person holding a similar position in
the industry or business of the Employer.
©​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
T EMPLATEROLLER.COM​ ​ ​ ​ ​
The Employer may make changes to the job title or duties of the Employee where the
changes would be considered reasonable for a similar position in the industry or business
of the Employer. The Employee's job title or duties may be changed by agreement and
with the approval of both the Employee and the Employer or after a notice period
required under law.
The Employee agrees to abide by the Employer's rules, regulations, policies and
practices, including those concerning work schedules, vacation and sick leave, as they
may from time to time be adopted or modified.
3. Place of Work. ​ T he Employee's primary place of work will be at the following
location:
________________________________________________________________________
4. Compensation. ​ T he Employee shall be entitled to receive a ______________ rate of
$______________ per ______________ (hereinafter referred to as the “Compensation”)
for performance of the duties described in this Agreement for the term of the Agreement.
The Employer is entitled to deduct from the Employee's Compensation, or from any other
compensation in whatever form, any applicable deductions and remittances as required
by law.
The Employee understands and agrees that any additional remuneration paid to the
Employee in the form of bonuses or other similar incentive remuneration will rest in the
sole discretion of the Employer and that the Employee will not earn or accrue any right to
incentive remuneration by reason of the Employee's employment.
The Employer will reimburse the Employee for all reasonable expenses, in accordance
with the Employer's lawful policies as in effect from time to time, including but not
limited to:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Expenses will be paid within a reasonable time after submission of acceptable supporting
documentation.
©​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
T EMPLATEROLLER.COM​ ​ ​ ​ ​
5. Benefits. The Employee has the right to participate in any benefits plans offered by the
Employer. The Employer currently offers the following benefits:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Access to these benefits will only be possible after the probationary period has passed.
6. Probationary Period. ​ I t is understood that the first ______________ of employment
constitutes a probationary period. During this time, the Employee is not eligible for paid
time off or other benefits. During this time, the Employer also exercises the right to
terminate employment at any time without advance notice.
Employer discretionary benefits are subject to change, without compensation, upon the
Employer providing the Employee with ______________ written notice of that change
and providing that any change to those benefits is taken generally with respect to other
employees and does not single out the Employee.
7. Vacation. The Employee will be entitled to ______________ of paid vacation each
year during the term of this Agreement, or as entitled by law, whichever is greater. The
times and dates for any vacation will be determined by mutual agreement between the
Employer and the Employee.
Upon termination of employment, the Employer will compensate the Employee for any
accrued but unused vacation.
8. Duty to Devote Full Time. The Employee agrees to devote full-time efforts to the
employment duties and obligations as described in this Agreement.
9. Conflict of Interest. ​ D uring the term of the Employee's active employment with the
Employer, it is understood and agreed that any business opportunity relating to or similar
to the Employer's actual or reasonably anticipated business opportunities coming to the
attention of the Employee, is an opportunity belonging to the Employer. Therefore, the
Employee will advise the Employer of the opportunity and cannot pursue the opportunity,
directly or indirectly, without the written consent of the Employer.
During the term of the Employee's active employment with the Employer, the Employee
will not, directly or indirectly, engage or participate in any other business activities that
©​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
T EMPLATEROLLER.COM​ ​ ​ ​ ​
the Employer, in their reasonable discretion, determines to be in conflict with the best
interests of the Employer without the written consent of the Employer.
10. Contract Binding Authority​ . Regardless of any other terms or conditions expressed
or implied in this Agreement to the contrary, the Employee will not have the authority to
enter into any contracts or commitments for or on the behalf of the Employer without
first obtaining the express written consent of the Employer.
11. Termination of Employment. ​ R egarding the termination cases of the Employee, the
following will apply:
a. The Employee may at any time terminate this agreement and his employment by
giving not less than ______________ written notice to the Employer.
b. The Employer may terminate this Agreement and the Employee’s employment at
any time, without notice or payment in lieu of notice, for sufficient cause.
c. The Employer may terminate the employment of the Employee at any time
without the requirement to show sufficient cause pursuant to (b) above, provided
the Employer pays to the Employee an amount as required by the Employment
Standards Act 2000 or other such legislation as may be in effect at the time of
termination. This payment shall constitute the Employee’s entire entitlement
arising from said termination.
d. The Employee agrees to return any property of the Employer at the time of
termination.
e. __________________________________________________________________
__________________________________________________________________
__________________________________________________________________
12. Severability. ​ T he Employer and the Employee acknowledge that this Agreement is
reasonable, valid and enforceable. However, if any term, covenant, condition or provision
of this Agreement is held by a court of competent jurisdiction to be invalid, void or
unenforceable, it is the Parties' intent that such provision be changed in scope by the court
only to the extent deemed necessary by that court to render the provision reasonable and
enforceable and the remainder of the provisions of this Agreement will in no way be
affected, impaired or invalidated as a result.
©​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
T EMPLATEROLLER.COM​ ​ ​ ​ ​
13. Remedies. ​ I n the event of a breach or threatened breach by the Employee of any of
the provisions of this Agreement, the Employee agrees that the Employer is entitled to a
permanent injunction, in addition to and not in limitation of any other rights and remedies
available to the Employer at law or in equity, in order to prevent or restrain any such
breach by the Employee or by the Employee's partners, agents, representatives, servants,
employees, and/or any and all persons directly or indirectly acting for or with the
Employee.
14. Notices. ​ A ny notices, deliveries, requests, demands or other communications required
here will be deemed to be completed when hand-delivered, delivered by agent, or
______________ after being placed in the post, postage prepaid, to the Parties at their
mailing addresses or as the Parties may later designate in writing.
15. Modification of Agreement. ​ A ny amendment or modification of this Agreement or
additional obligation assumed by either Party in connection with this Agreement will
only be binding if evidenced in writing signed by each Party or an authorized
representative of each Party.
16. General Provisions. The general provisions the Parties shall follow include the
following:
a. Time is of the essence in this Agreement.
b. Headings are inserted for the convenience of the Parties only and are not to be
considered when interpreting this Agreement. Words in the singular mean and
include the plural and vice versa. Words in the masculine mean and include the
feminine and vice versa.
c. No failure or delay by either Party to this Agreement in exercising any power,
right or privilege provided in this Agreement will operate as a waiver, nor will any
single or partial exercise of such rights, powers or privileges preclude any further
exercise of them or the exercise of any other right, power or privilege provided in
this Agreement.
d. This Agreement will inure to the benefit of and be binding upon the respective
heirs, executors, administrators, successors and assigns, as the case may be, of the
Employer and the Employee.
©​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
T EMPLATEROLLER.COM​ ​ ​ ​ ​
Page of 6